JP Morgan Asset Management has launched a new Ucits strategy in its Sicav range, JP Morgan Funds – US Opportunistic Long-Short Equity fund.
This alternative equity strategy will take a total return oriented approach to seeking less correlated risk-adjusted returns. Compared to traditional long-only equity portfolios, the fund will target lower volatility and flexible market exposure by opportunistically managing gross and net market exposure.
In other words, it will have the ability to use short positions through the use of financial derivative instruments to manage risk and adjust to changing market conditions during difficult equity periods, and the flexibility to use net long exposure to help capture positive stock market performance when the market is moving higher.
It will seek to deliver higher risk-adjusted returns with lower volatility than long-only equity strategies.
JP Morgan Funds – US Opportunistic Long-Short Equity Fund will leverage the firm’s extensive research analyst capabilities, utilising a fundamental, bottom-up approach to focus on high conviction stock selection. It will be run by lead portfolio manager Rick I. Singh, who brings 15 years of industry experience managing this investment process.
The fund’s flexible net market exposure range across long and short positions is designed to help limit losses and protect assets during declining markets, whilst still capturing much of the market’s upside potential.
“US equities investors are increasingly looking for a degree of downside protection. This strategy seeks to generate alpha whilst employing disciplined risk management, with greater transparency and liquidity relative to traditional hedge fund vehicles,” said Massimo Greco, head of European Funds, JP Morgan Asset Management.